Murdoch at Fox TV seen by some as ‘slap in face’

News Corp shareholders have reacted angrily to news that
James Murdoch
could soon run the media giant’s flagship Fox TV channel.

The son of News Corp chairman
Rupert Murdoch
was heavily criticised on Thursday by British regulators over his role in the hacking scandal. On the same day, news broke he may soon be given control of some of the media firm’s most high-profile assets.

One dissident shareholder called the news a “slap in the face for shareholders, not to mention victims of the hacking scandal".

Mr Murdoch is reportedly set to take over the running of Fox Networks, News Corp’s US TV business that includes its national Fox channel, home to American Idol and The Simpsons, and cable businesses including FX.

The news, first reported by the Financial Times, came the same day that British regulator Ofcom issued a report that took Mr Murdoch to task over his role in the phone hacking scandal.

James Murdoch was head of News Corp’s UK newspaper business as the hacking scandal broke. The regulator concluded he “repeatedly fell short of the conduct to be expected of as a chief executive and chairman" and that his lack of action was “difficult to comprehend and ill-judged".

But in a ruling that handed a major victory to James’ father Rupert Murdoch, Ofcom ruled that BSkyB, the satellite broadcaster whose largest shareholder is News Corp, remains a fit and proper owner of broadcast licences.

News Corp declined to comment on the reports of James Murdoch’s role at US operations.

Last year Ms Tanner led a shareholder revolt that ended with the majority of independent shareholders voting against the re-election of James Murdoch, his brother Lachlan and most of the News Corp board. She has lodged a similar resolution ahead of this year’s meeting.

“While we are disappointed – and frankly, somewhat amazed – by this move, I also hope it sheds light on the importance of voting for our resolution to appoint an independent chair at the New Corp AGM. This is a clear example of the need for improved corporate governance at the company," she said.

The promotion would come as News Corp continues to face legal investigations into the phone-hacking scandal on both sides of the Atlantic. The justice department is investigating News Corp under the foreign corrupt practices act (FCPA), a statute that prosecutes US firms found guilty of bribing foreign officials.

Some 50 people have so far been arrested in the UK over the scandal, including two journalists at The Sun newspaper and a policeman arrested this week during an ongoing bribery investigation.

James Murdoch resigned as chairman of News International, the media group’s UK newspaper business, in February and from BSkyB in April. He relocated to the US and has so far kept a lower profile. But his elevation would likely to trigger a new round of criticism from shareholders and pressure groups.

In August lobby group Citizens for Responsibility and Ethics in Washington (Crew) filed a complaint with the broadcast regulator the Federal Communications Commission (FCC) arguing News Corp was unfit to run US broadcasting licences.

Crew executive director Melanie Sloan said the possible elevation of James Murdoch would strengthen their case. “It seems to me that there is a lot more to come out about James Murdoch. There are plenty more questions that need answers."